Bumble launches $200 million term loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, Oct. 6 – Bumble (Buzz Finco LLC) launched on its lender call on Tuesday a $200 million senior secured incremental covenant-lite term loan B due Jan. 29, 2027 with price talk of Libor plus 325 basis points to 350 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Mandatory repayments are from 50% excess cash flow sweep with step downs to 25% and 0% at consolidated first-lien net leverage of 3.25x and 2.75x, respectively, 100% of material non ordinary course asset sale proceeds of collateral with step downs to 50% and 0% at consolidated first-lien net leverage of 3.25x and 2.75x, respectively, with reinvestment rights, and 100% debt issuance proceeds other than permitted debt.

Security is a perfected first priority lien on substantially all tangible and intangible assets and capital stock of the borrower and guarantors.

Citigroup Global Markets Inc., Barclays, HSBC Securities (USA) Inc., RBC Capital Markets, SMBC and Blackstone Securities Partners are the joint lead arrangers on the deal. Citigroup is the administrative agent.

Commitments are due at noon ET on Friday, the source added.

Proceeds will be used with cash on hand to fund a distribution to shareholders.

The incremental term loan, to the extent necessary based on pricing in syndication, will be implemented as a separate tranche of term loans under the existing credit agreement from the initial term loans.

Bumble, also known as MagicLab, is a provider of online dating and social networking services.

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